Daily Yellowstone journal. [volume] (Miles City, Mont.) 1882-1893, 1887-01-26

to twenty. Loans have been taken
during the winter as eagerly rs during
the building season, and II the present
standing applicants maintain their
desire to borrow, there will ne custom.
ers for all the money the association
will have 10 loan for the next twelve
months, It maximum rates.
II il beginning to be q question with
some who are interested In the local
whether it's I'll nited" or.
ganization Is as beneficial as per
msDent" or unlimited one would
be. The difference 10 solely this:
The Miles City association is incorpo-
rated with q fixed amount of capital
stock (s2OO. 900 divided into 900 shares
of 500 EACH expressed In its charter;
consequently when these 900 are taken
up the association Is declared from is-
suing any more stock, and the only
way new members can be taken In, 10
by the purchase Of stock held by 9TH
ers. or by the purchase Of STOCK that
may have been surrendered by delin-
quents. In either event 1t becomes
necessary to pay the present value Of
stock, which after the association has
passed q year or two of existence,
would require . considerable sum Of
money, thus practically barring out
many who would under other circum-
stances become share holders and
borrowers. The permanent" system
allows an issue OF new series of stock
whenever there may be enough new
members TO, In the opinion Of the trus-
tees, warrant 1t. While this system
may have an advantage, In permitting
new members to take shares without
having to pay up q considerable ar
rearsge on stock alresdy valuable by
reason Of Its age, 1t certainly has the
oisao'an'ose '"a'' 'o"'n"n'y
at least, OF having two or three series
Of stock running. In neither Of which
Is there enough money to allow Of q
respectable loan being made. Take
for instance, the case Of the Billings
Association. On q basis of full Day.
ment being made ana maximum prem
iums being paio, asnare holder 10 ser
les numoer one can only oe sccommo'
dated Win sSoo, whiie series TWO, three
and four are limited respectively u
loans OF s2So, 900, and $SS. such email
amounts as these are OF no value TO the
borrower, as, II he contemplstes build
ing anything morepreten'ious than an
out house. he must wait a year or two
before his loan can be fully paid over
to him, and yet he must pay interest
on 1t from tie time he first acquires
the right to its Use. The Miles CITY
Association has now In force about eoo
shares, ana has at each meeting been
able to offer sl'ooot 10 borrowers Ihls
is satisfactory amount ana enables
the borrower 70 accomplish something
at once. Ihere are stiii about lou
shares OF stock uniaEen, when ol
course when sold' must De SOLD Tor the
then present value OF the stock''whlch
we Will say Tor example Is now VIA
inis requires rom any one Wne
might now desire 10 JOIN the associ
Alton anu take Ten shares, az immedi
ate payment Oh si4o' out, haVinf
PAID this ne would then De OF
level with the original share holders
subject TO the usual payment OF on
dollar per snare per month thereafter
and participant In the profits OF th'
association. The only difference be
tween him and the original member
being that he has paid premium ol
his stock for coming In late and beinI
allowed to share In the profits, whicl
the payments Of the original member
nave earned up 70 thst GATE. 10 on
who Is seeking to borrow, or on
who is seeking an investment, the I'D
vantage would appear to be In gettin
into series that is pretty well nlled
even 81 the cost Of paying . premium
as the price paid lie the recognized casl
value Of the stock and profits In q liv
and adequate series. are presumaol.
better than In one that has no induce
ment whatever to offer Its member
10 become borrowers. In the large
cities associations issue new serie'